World Events

Question 1

What are the main areas that have been affected because of the Russia/Ukraine war?

Answer 1

1) Increased energy costs will impact
materials and product production and
cause cost increases.
2) Oil price rises will impact petrol costs,
affecting deliveries and increasing
delivery costs.
3) The supplies of some materials may be affected.

Question 2

What has the affect been on crude oil/natural gas?

Answer 2

1) EU is heavily reliant on Russia imported energy.

2) Now EU are looking for alternative sources (Saudi Arabia/Venezuela).

Question 3

How have the sanctions affected the UK?

Answer 3

Sanctions are impacting production, and the conflict is
restricting movement.

Ukraine/Russia/Belarus- significant producers and exporters but these have ceased.

Timber is also suffering- high demand has caused increased costs, and conflict is restricting supplies.

Shipping/Logistics- Importers looking for non-Russian alternatives, increasing demand.

Question 4

What are the wider impacts?

Answer 4

• Food prices increases (Wheat)

- Inflation has worsened, Covid-19 repercussions.